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MARKET TRENDS DRIVERS OF DEVELOPMENT

The UK automotive industry is committed are also plans to roll out the scheme to other
Chart 10 Average CO 2 g/km (2013) by EU country to improving technology and efficiency of its public service providers, including local councils,
products to deliver reductions in CO 2 emissions. the police and the NHS. This project is the first
However, it is crucial that all stakeholders, step in plans to make ultra low emission vehicles
160
including policy makers, regulators and consumers commonplace in government fleets.
140 help drive the necessary development – taking on Advanced Propulsion Centre
Average CO 2 g/km 100 CO 2 emissions. In November 2014, the Automotive Council
an integrated approach to successfully reduce
120
a. Government
opened the Advanced Propulsion Centre (APC)
80
at the University of Warwick, a £1 billion 10-year
60
in the next generation of eco-efficient engines
Emission Vehicles
40 Support for Ultra Low commitment, to harness future technologies
and ULEV vehicles. Funding rounds for projects
20 involved with the APC are announced twice a year
Continued support for Ultra Low Emission and currently four projects have been allocated
0 Vehicles by government has been central to the funding, including the continued development of
EU-28 UK Germany France Italy Spain Belgium Netherlands Austria Sweden Denmark Portugal Finland Ireland Greece Luxembourg growth of the early market of these vehicles Ford’s EcoBoost engine and GKN’s motorsport
and investment in R&D for new low carbon
energy recovery technology.
technologies. £500 million has been committed
by government for ultra low emission vehicles Roads Investment Strategy
Source: ACEA, 2014 Pocketbook from 2015 to 2020. The Office for Low Emission
Vehicles (OLEV) published its initial plan of how The Roads Investment Strategy (RIS)
Diesel continues to dominate the passenger were hybrid-electric. Although this is relatively this funding would be allocated in April 2014. announcement at the 2014 Autumn Statement
car market in the EU. In 2013, 53% of all newly low, it is increasing and is more than twice as Key elements of this funding are outlined below: saw a £15 billion public funding commitment for
registered cars were diesel. It is also relevant high compared to two years ago. Hybrid-electric the improvement of UK roads between 2015 and
to note that hybrid vehicles are also increasing vehicles are most popular in the Netherlands, • £200 million for the continuation of consumer 2020, with provision to install rapid-charging
and in 2013 1.6% of all new car sales in the EU making up 9.7% of the market share in 2013. grants to support ULEV uptake, with the points approximately every 20 miles on 95% of
current £5,000 grant remaining in place until the Strategic Road Network. Alongside this, £100
at least 50,000 ULEVs have been sold or 2017, million has been allocated for issues related to
whichever is the sooner. £30 million to support air quality.
other vehicles including vans.
• A city scheme with up to £35 million allocated London Ultra Low Emission Zone
to two to four cities for supporting a step
change in ULEV uptake was announced. In 2013 the Mayor of London announced plans
for introducing an Ultra Low Emission Zone
• £20 million for local authorities to introduce in central London by 2020. In 2014 the Mayor
ULEV taxis and £30 million for low emission announced additional measures for taxis and
buses. private hire vehicles with the aspiration to have

• £32 million to fund electric vehicle charging newly licensed taxis and private hire vehicles
infrastructure, alongside £4 million for gas to be “zero emission capable” from 2018. A
refuelling stations. consultation was launched in October 2014
which outlined the plans and proposed vehicle
• £100 million for supporting research and standards for entry into the ULEZ. In March 2015
development in ULEV technology. the Mayor of London confirmed these plans and

Almost 15,000 plug-in car grants were issued in the introduction of an Ultra Low Emission Zone in
2014, a threefold increase on the previous year, central London from 7 September 2020.
while more than 25,000 plug-in car and van grant
claims submitted since consumer incentives b. Vehicle Excise Duty and
began in 2010. other Motoring Taxes

Government Procurement VED rates for cars, motorcycles and the main
rates for vans increased by RPI from 1 April
A significant announcement in conjunction with 2015. Table 3 shows the effective VED rates from
OLEV in 2014 was a £5 million government fleet April 2015 for new and existing cars in the parc
procurement programme to support the uptake and includes an analysis of the individual and
of ULEVs within central government fleets. There cumulative shares of all new cars and all parc

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